IS IT TRUE? October 15, 2011
IS IT TRUE that today is the day the group of people calling themselves “Occupy Evansville†will be assembling at the Four Freedoms Monument to set up the occupation?…that the combined Facebook “like†indicators are now over 2,000?…that looking over the site there are people from as much as 100 miles away indicating that they will be joining in the occupation of Evansville?…that finally today that some pointed political posts and some demands are starting to show up in the local sites?…that these demands are looking very much like what other parts of the country are hearing?…that it seems as though this leaderless and misdirected group may be getting its marching orders from somewhere because that is the only way that uniform statements could ever find their way to what is now several hundred groups?…that if and we must say if the list of 13 “demands†that are listed in the Evansville Courier and Press this morning are the goals of this group that what they have is a utopian dream that will put the last dagger into the heart of the already weakened American economy?…that we hope that the Evansville group will direct its youthful energy into things that Evansville can use improvement with?
IS IT TRUE that within “Occupy Evansville†there is a very vocal group that are naming targets for march bys?…that the targets listed include Vectren, some banks, Springleaf (for AIG history), and of course government buildings?…that there is a section under legal where all of the protesters are instructed about what is legal and what is not?…that there is no need for anyone to expect any violence or disrespect as the group seems to be well coached on protest etiquette?…that all of these targets have some merit and may be a part of the improvement of Evansville and that we hope that they will see march-bys as a wake-up call as opposed to an attack?
IS IT TRUE that the press release from Vectren this week letting us know that natural gas prices have fallen and that we can on average expect to pay $10 less this winter to keep warm?…that of course the normal disclaimers like “if the winter weather is just like last year’sâ€, “if the sun shines as much as normalâ€, and “if there are as many power outages as last year†then you will see you $10 but if not we are not responsible for this statement were included?…that what the press release really said was “if you use exactly the same amount of gas that you used last year Vectren believes based on its purchases that you will save $10, and they would like to get credit for saving you the $10â€?…that this press release was really just an FYI to the ratepayers?
IS IT TRUE that unlike electricity where Vectren’s prices are dramatically higher than nearly every utility in the United States, their gas pricing is decoupled and actually has to compete in some areas that it serves?…that decoupling means that the price of the gas itself is passed directly through to the ratepayers at the cost that Vectren spends to acquire the gas?…that if Vectren is a good shopper that we the ratepayers benefit?…that if Vectren is a bad shopper and pays a high price for the openly traded commodity of natural gas that they will pass those extra costs on to us as well?…that during the last 5 years Vectren has been both a good and bad shopper?…that natural gas is traded today at $3.54 per million Btu’s and has a rising inventory?…that natural gas has not changed considerable over the past year but it has dropped dramatically from its highs of over $10 per million Btu in much of 2005?…that natural gas due to fracking increasing the supply is actually at a 10 year low in real dollars per Btu?…that Vectren does not have the size to control this market and is much at the whims of the market for gas as the ratepayers of SW Indiana are to the whims of the IURC?
IS IT TRUE that Vectren makes all of its profits from its gas operation from “distribution and service chargesâ€?…that in one recent statement that “distribution and service charges†make up 77% of the gas charges while the “therms used (code for gas)†only makes up 23% of the total gas charges?…that while the recent press release was informative that it was a little sleight of hand as Vectren as a company is only earning profits from the “distribution and service charge†side of that equation?…that given the drop in natural gas since 2005 that one would expect that the gas portion of the bill should be 60% lower now than it was then?…that that nice warm air is moved with fans from the source of the flame to most homes?…that these fans are powered by electricity which at the end of the day still cost triple as much in Evansville than it does across the money saving bridge?
IS IT TRUEthat 10 therms = 1 million Btu’s?…that a recent bill would calculate that Vectren charges $4.85 per mmBtu?…that the spot market for natural gas has been stable this year at just over $3.50 per mmBtu?…that it seems as though Vectren’s overhead associated with purchasing the natural gas must be about 35% – 40%?
Link to historical natural gas price chart:
To the Occupiers:
Let me drop some names on these “occupiers”. The names of the people who walked off with everyone’s savings in 2008 and left this country in its current shape.
I think these people are much more deserving of your attention than the current list you are focused on.
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Henry Paulson: former CEO Goldman Sachs, former Sect. of the Treasury.
Alan Greenspan: former Chairman of the Federal Reserve
Ben Bernanke: Chairman of the Federal reserve
Richard S. Fuld, Jr.: former CEO Lehman Brothers
Lloyd Blankfein: former CEO Goldman Sachs
John J Mack: former CEO Morgan Stanley
John Alexander Thain: Former CEO Merrill Lynch
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Go camp out on their lawns. Follow them around and ask them what happened to your parent’s savings.
Then move to the members of congress who wrote the laws that allowed the above named pirates to operate. They will be easier to find, as they are still serving in the congress!
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This makes more sense than anything I have read about it thus far. Of course, if the Occupiers followed this advice, they’d be arrested en masse for trespassing on private property, while demonstrations on public property are protected by constitutional rights.
So far, the only thing I disagree with you about is your condemnation of the protestors as socialists and communists, which some of them may be. But my thinking is you’re using those terms derogatorily, and drawing that conclussion because they advocate “redistribution of wealth” (in your estimation) by demanding a more fair reconstrution of federal tax schedules. I look at it from the point of view that the wealth of the middle and working classes already has been redistributed to the top 1 or 2% of richest Americans.
There only two lawns that the crazies ought to camp on: Bawney Fwank (Barney Frank) and Chris Dodd. They used the Community Reinvestment Act (enacted circa 1977) as the rationale to compel mortgage companies such as Countrywide to originate no-down payment mortgages to people whose income was insufficient to make the payments. Countrywide also gave Frank, Dodd, and other liberal pukes sweetheart deals on mortgages at interest rates lower than market rates. Those are the villains who belong in Federal prison, serving life terms without parole.
The Editor says that the Occupy Evansville group, or the Occupy Wall Street group (it’s not clearly stated) has “a utopian dream that will put the last dagger into the heart of the already weakened American economy.”
Please take some time a write a more full editorial on this point. I did not read the “demands” of the Occupy Evansville group in the Courier & Press. Please devote a bit of space and print those demands, and explain the Editor’s opinion that the demands demonstrate “a utopean dream that will put the last dagger into the heart of the already weakened American economy.”
If you have time, also give us the Editor’s opinion of how the American economy already has been weakened. You know, how and who or what exactly weakened it, so we can more clearly see how these “utopean” dreamers down at the Four Freedoms Monument are stabbing that weakened economy in its heart.
Thanks.
Just came from down there and will work on your request. I must say that the feature in the CP this morning with the “13 demands” is not something that I was able to verify with any of the national “Occupy” statements and certainly not from the group down there today. They were quite peaceful and could only agree to march around Vectren which was pretty well fortified. The first march they voted for didn’t even target a bank or any government building. The ring leader is not a plant from out out town and is a well educated young man. I expect no trouble from this group and do not believe the CP article with the demands is accurate. There were a couple of hundred people downtown with about half young and half older. No instances at all.
Yes, one of my very good friends is down there, and I’m hearing same as what you’re reporting. That’s why I questioned the alarming note of your first report … “a dagger in the heart of an already failing economy” crap.
We just got word that if they don’t leave by 11:00 that they will be removed by force. How ironic is it that the Four Freedoms Monument is where freedom to assemble is about to be taken away.
“…IS IT TRUE that Vectren makes all of its profits from its gas operation from “distribution and service chargesâ€?…”
NO, it isn’t true.
Vectren owns half of a subsidary company named “PROLIANCE”. Proliance buys up gas, stores it and RESELLS it to VECTREN at a profit. Vectren then collects HALF of the PROLIANCE profit, in addition to the “distribution and service charges” we are required to pay, whether we are using any gas or not. That is how they continue to “snegally” gouge us and garner the huge profits to pay their high dividends and huge top management’s salaries.
The same fans you describe moving heat in the winter, are also moving cool air in the summer. The electricity eats us up all year round. This month has been the best. I’ve run neither my a/c, furnace or clothes dryer. Too bad it won’t last very long.
History of SIGECO
“In fact, it became clear during the early 1950s that SIGECO might have trouble meeting the demand for natural gas. The problem was that its main gas works, which had been the key gas production and supply facility for years, had become obsolete. To solve the problem, SIGECO invested heavily to add underground gas storage facilities to feed its main pipeline system, and closed the original gas works. That effort had the added benefit of allowing SIGECO to purchase surplus gas when prices were low.”
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How many of those underground storage facilities that SIGECO “invested heavily” in are still owned by Vectren/SIGECO?
Vectren should be required to go out on the market for its natural gas and its coal. If it wants to operate separate companies in the coal and gas markets that are not in any way supported by ratepayers in their regulated business then more power to them, (no pun intended). Those companies would have to compete with all the other suppliers for Vectren’s regulated business supply contracts.
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I drove by the Four Freedoms Monument this morning around 11:00. I didn’t see a soul. So much for “occupying” Evansville. Maybe they were taking a coffee break at the Garden Cafe at Stratman’s.
I think Pressanykey went by there about 10:30 and gave them google earth directions to your place.
Yes Vectren’s rates are high and the highest in Indiana, but they are NOT i repeat NOT the highest in the Tri-state area (area surrounding Evansville). Why don’t you go check out the family owned MT. Carmel Public Utility. They are almost 20% higher than Vectren rates. Maybe sombody needs to investigate them.
Illinois started a decade-long transition to electric choice in 1997. The two main utilities, Commonwealth Edison and Ameren, sold their power plants and now only own the transmission and distribution wires that deliver electricity to your home or business.
Customers at ComEd, Ameren, MidAmerican Energy and Mt. Carmel Public Utilities all have the opportunity to save money by shopping for the supply portion of their electric bill.
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Would that we had the same opportunity to “shop” for the supply portion of our Vectren electric and gas bills!
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Callous insult removed by CCO management . Take the time to review what constitutes gas costs and you will see that more than just the cost of gas itself is included. Gas utilities have to pay interstate pipelines for the cost of transporting gas to their systems. These costs are then passed on to customers at no profit to the utilities. Another fallacy of your argument is basing the price comparison on the spot market price of gas. Which spot market price are you using? Prompt month, daily, or some other “spot market” price? In fact, utilities use a combination of purchasing tactics. Several years ago, when cite the $10/ unit price, there were some spot market prices approaching $20 per unit. Using hedging strategies customers avoid paying the highest cost for all purchases, but the downside is they seldom pay the lowest cost.
There is more opportunity for customer input into the prices utilities charge customers than any other industry, yet customers take no time to prepare their cases. Their chief rebuttal is only that it costs too much.
Check other states that have utility choice and you will find their gas prices are higher than Indiana’s, in general.
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